Up to a million Canadians would struggle to cope with a 1 per cent rise in interest rates with 700,000 at risk from even a 0.25 per cent rise

The federal finance minister says he will work with the provinces to address housing affordability issues.

Responding to a letter from Ontario’s finance minister Charles Sousa, Bill Morneau’s spokesperson said the federal government is committed to tackling housing affordability.

"Our government is bringing consistency to mortgage rules by standardizing stress tests for both low and high ratio mortgages. Additionally, we’re improving tax fairness by ensuring that the principal residence exemption is available only in appropriate cases," the response said.